The tough part of this project would having it be watchable all the way through. Honestly, I think I'd enjoy it more with annotations about what each scene was like in the rough cut. Maybe an option of watching it all the way through as well. We'd have to try a few options and see what works. But that is a ways down the road.
I think the best way for the project to get rolling would be for individuals to start cracking individual scenes and have a master editor splice them all together. Someone could tackle the "mini-Flash Gordon" scene for instance. I've got plenty to suggestions if anyone wants to jump on something.
Much of the project would end looking like Deleted Magic just without the annotations.
EDIT: I've got a version of the rough cut opening crawl in the works as well to go with Jambe's project. So we can (basically) cross that off the list.